ACIT Vs Y.S.Jagan Mohan Reddy Kadapa (ITAT Hyderabad)
ITAT Hyderabad held that addition on the basis of loose papers and documents found from the premises of third party is not tenable in the eye of law. Accordingly, appeal of the revenue is dismissed since addition not based on substantial evidence.
Facts- During the course of assessment proceedings, AO noticed that a report was received from the Directorate of Investigation, Delhi, indicating payments in cash by Dalmia group to the assessee. Therefore, in the notice u/s 142(1) issued on 03.08.2013, it was brought to the notice of the assessee that during search action conducted by the Directorate of Investigation, New Delhi in the case of the Dalmia group, incriminating material was found indicating cash payments to the assessee. AO, further noticed that copies of the accounts, e-mail and SMS content as found in a seized pen drive were furnished to the assessee. However, assessee denied having any kind of relation with the Dalmia group and the alleged cash receipts, as claimed by AO.
AO made total addition of Rs.139.67 crores towards alleged amount received by the assessee, towards sale of shares of Bharati Cement Corporation Pvt. Ltd. by M/s Dalmia Bharat Enterprises to M/s Parficim SAS.
